News Release

Verinata Developed and Markets Industry’s Most Comprehensive
Non-Invasive Test for Early Identification of Fetal Chromosomal
Abnormalities

SAN DIEGO--(BUSINESS WIRE)--Jan. 7, 2013--
Illumina, Inc. (NASDAQ:ILMN) today announced that it has signed a
definitive agreement to acquire Verinata Health, Inc., a leading
provider of non-invasive tests for the early identification of fetal
chromosomal abnormalities, for consideration of $350 million plus up to
$100 million in milestone payments through 2015. Upon completion of the
acquisition, Illumina will have access to Verinata’s verifi® prenatal
test, the broadest non-invasive prenatal test (NIPT) available today for
high-risk pregnancies, and to the most comprehensive intellectual
property portfolio in the non-invasive prenatal test industry. As
non-invasive prenatal testing is one of the most rapidly growing areas
utilizing next-generation sequencing, Illumina is uniquely positioned to
be at the forefront of providing superior prenatal testing options.

“This agreement with Verinata demonstrates Illumina’s commitment to
developing innovative diagnostic solutions and providing our partners
with the most advanced technologies for improved patient care,” said Jay
Flatley, President and CEO of Illumina. “Building on the recent
acquisition of BlueGnome Ltd. and our expertise in next-generation
sequencing, this announcement further establishes Illumina as a leader
in reproductive health.”

Available through a physician, the verifi test analyzes cell-free fetal
DNA naturally found in a pregnant woman’s blood to look for missing or
extra copies of chromosomes (referred to as aneuploidies). Specifically,
the test detects Down syndrome (trisomy 21 or T21), Edwards syndrome
(trisomy 18 or T18) and Patau syndrome (trisomy 13 or T13). It is the
first non-invasive prenatal test that offers the option to include
evaluation of sex chromosome aneuploidies, such as Turner syndrome
(Monosomy X), Triple X (XXX), Klinefelter syndrome (XXY) and Jacobs
syndrome (XYY) – the most common fetal sex chromosome abnormalities.

Compared to other testing options, the verifi prenatal test provides
more definitive information than risk score-based tests (traditional
protein serum screens), which calculate probabilities, and does not
carry the risk of complications that an invasive procedure, such as an
amniocentesis, can have. The robust technology behind the verifi test
leverages the power of massively parallel next-generation sequencing
with a highly optimized algorithm to provide accurate aneuploidy
detection, with the ability to look across the entire genome.

“Together, Illumina and Verinata are well-suited to drive the adoption
of the non-invasive prenatal testing market. With approximately 500,000
high-risk pregnancies annually in the United States and an estimated
four million pregnancies in total, there is a clear need for such
tests,” said Dr. Jeffrey Bird, Executive Chairman and CEO of Verinata
Health. “Given the recent American College of Obstetrics and Gynecology
(ACOG) and Society of Maternal and Fetal Medicine (SMFM) joint opinion
that recommended cell–free DNA prenatal testing as a first or second
trimester option for women at increased risk of aneuploidy, we believe
more physicians will be adopting NIPT.”

The verifi test will continue to be offered through Verinata’s
CLIA-certified and CAP-accredited laboratory, which will continue to act
as a reference laboratory to gather some of the necessary clinical data
for future regulatory submissions.

According to Greg Heath, SVP and General Manager of Illumina’s
Diagnostics business, “The synergies between Verinata’s and Illumina’s
capabilities, combined with the expertise in reproductive health gained
from the acquisition of BlueGnome, enable Illumina to provide a
compelling portfolio of offerings across the spectrum of reproductive
health.” He added, “We look forward to integrating Verinata into our
organization and leveraging the combined knowledge and resources.”

Based on ACOG and SMFM guidelines for high-risk pregnancies in the
United States, the addressable NIPT market is estimated to be more than
$600 million in 2013. The total domestic market is estimated to grow to
1.5 to 2 million tests performed annually within the next five years.
Working with our partners in this space, Illumina expects to service a
significant portion of that market. Including the impact of synergies,
the transaction is expected to be approximately $0.20 dilutive to
Illumina's non-GAAP earnings per share in 2013 before turning accretive
beginning in 2014 and beyond. Fiscal year 2013 guidance, including the
impact of this transaction, will be provided during the Company's fourth
quarter and fiscal year 2012 earnings call. The transaction will be
financed primarily with cash on hand and is expected to close after the
satisfaction of customary regulatory approval.

Illumina (www.illumina.com)
is a leading developer, manufacturer, and marketer of life science tools
and integrated systems for large-scale analysis of genetic variation and
function. We provide innovative sequencing and array-based solutions for
genotyping, copy number variation analysis, methylation studies, gene
expression profiling, and low-multiplex analysis of DNA, RNA, and
protein. We also provide tools and services that are fueling advances in
consumer genomics and diagnostics. Our technology and products
accelerate genetic analysis research and its application, paving the way
for molecular medicine and ultimately transforming healthcare.

Forward-Looking Statements

This release contains forward-looking statements that involve risks and
uncertainties. Examples of forward-looking statements include, but are
not limited to, statements we make regarding the expected impact of
synergies and the transaction’s effect on Illumina’s non-GAAP earnings
per share. Important factors that could cause actual results to differ
materially from those in any forward-looking statements include
challenges inherent in integrating Verinata with our existing operations
and the other factors that are detailed in our filings with the
Securities and Exchange Commission, including our most recent filings on
Forms 10-K and 10-Q, or in information disclosed in public conference
calls, the date and time of which are released beforehand. We do not
intend to update any forward-looking statements after the date of this
release.